US Pharmaceutical giant Merck is reportedly in talks to buy California-based cancer drugmaker Revolution Medicines, Financial Times reports.
Citing people familiar with the matter, the financial daily said that Merck has not yet finalised the deal with the biotech firm, which currently has a market capitalisation of more than $20 billion.
A price tag of $28bn to $32bn is being discussed and this could be another mega deal after Pfizer took over biotech firm Seagen or $43bn.
This report comes shortly after the Wall Street Journal had reported that AbbVie is in talks to acquire the cancer drugmaker. However, AbbVie later denied the report.
A deal with Revolution could give Merck access to its experimental drug daraxonrasib, which is in late-stage trials and has won a fast-track review voucher from the US Food and Drug Administration.
The drug is designed to target multiple mutations in the RAS genes, which are common drivers of major cancers, including certain pancreatic, lung, and colorectal cancers.
Merck, which is set to lose patents for its blockbuster cancer treatment Keytruda later this decade, has nearly tripled its late-stage pipeline since 2021 through in-house development and big deals such as the $11.5 billion purchase of Acceleron for pulmonary arterial hypertension drug Winrevair.
